The Zambian government says real economic growth of between 7-8 percent has been targeted over the medium term 2014-2016, while inflation has been targeted to decline to no more than 5 percent by 2016.
The Ministry of Finance said Zambia needs to achieve higher levels of economic growth to make meaningful headway in creating decent jobs and reducing poverty and inequality.
“Inflation remains in single digits at 7% in 2013, and goal is to reduce this to no more than 5% by end 2016. Average lending rates have stabilised around 16%,” the Ministry said in a statement released here Monday.
It said government remains committed to maintaining macroeconomic stability characterized by low inflation, stable exchange rate and rising international reserves.
GDP growth in 2013 was said to be 6.5 percent with average real growth over the past three years (2011 – 2013) of 6.9 percent.
Key contributors to real GDP growth in 2013 were: transport, storage and communications (27.1%); construction (24%); community, social and personal services (17.4%); financial institutions and insurance (13.7%); manufacturing (8.2%); and mining (5%), the ministry said.
Agriculture, mining, manufacturing, tourism, energy and construction are set to be major drivers of GDP growth and job creation over the medium to long term.